Thai Biogas Energy Company (TBEC) won contracts to build and operate two biogas plants in south Thailand. However, its debt requirements for the two plants were too small for the project finance departments of local banks, and too complex for the banks’ corporate banking departments. It therefore required GuarantCo’s assistance in raising the needed finance.

The facility enabled TBEC to raise the long-term, affordable financing it required for the two plants, and further develop its plans for expansion in to poorer neighbouring countries.

TBEC’s plants clean waste water from various agri-factories, generating biogas in the process. The biogas is partly supplied to the agri-factories to meet their energy needs, replacing polluting coal, diesel or Heavy Fuel Oil. The rest of the biogas is used to produce electricity for supply to the local grid.

TBEC’s plants reduce local air and water pollution, provide renewable energy and electricity, and help in mitigating climate change through methane capture. The guarantee facility introduces ICBC Thailand to mid-size renewable energy financing, which could encourage it to provide more of such loans in the future.